Abuse of 41 items access to FX: CBN to blacklists banks, Directors, others
Over the abuse of 41 items access to Foreign Exchange (FX), the Central Bank of Nigeria (CBN) has said, corporate entities and their directors will be blacklisted from operating in the country’s financial transactions.
Other sanctions by the apex bank include closure of their bank accounts; and restricting them from maintaining any bank accounts in any bank under the CBN remit
The circular signed by the Director, financial policy and regulation department, CBN, Mr. Kevin Amugo, noted that commercial banks that provided their platforms for such economic abuses would be appropriately sanctioned.
According to him, “The CBN views this development with trepidation. The Economic intelligence Unit of the Bank in collaboration with the Economic and Financial Crimes Commission would commence immediate investigation of the accounts of the corporate and entities engaged in this unwholesome act with a view to visiting severe sanctions on all the culprits.”
He noted that banks are by this new notice advised on strict compliance with the Know Your Customer (KYC) and Know Your Customer Business (KYB) requirements and to be properly guided.
The apex bank as part of its developmental objective of employment generation and inclusive growth in Nigeria on July 1, 2015, restricted the availability of foreign exchange to the importation of 41 items, which could be competitively produced within the country.
According to him, “This policy has resulted in massive investments and the establishment of cottage industries that now engage in the production of the restricted items across the country. The growth and employment benefits have been phenomenal.
“Unfortunately, trade information available to the CBN indicates the circumvention of the policy as the restricted items are being dumped in the country. The implications are that the growth and employment benefits arising from the policy may be eroded if not checked.”
Meanwhile, the Director, Trade & Exchange Department, CBN, Mr. Ahmed Umar in another circular said, “In the continued effort to sustain the achievement recorded from the classification of 41 import items as “Not Valid for Foreign Exchange” in the Nigerian Foreign Exchange Market, authorized dealers and the general public are hereby notified of the inclusion of “Fertilizer” on the list effective December 07, 2018.
“However, CBN will ensure that transactions (Form ‘M’) on fertilizer for which payments are outstanding are settled at the appropriate settlement dates.”
